If you trust what Ken Keller presented last week at Roth's conference, the shortage if exists, won't impact Spectrum at all.
I know it sounds crazy but it's true.
KK told us that the whole sellers are fully supplied for quarters to come. They bought much more than the actual end user demand to satisfy future demand and to mitigate the shortage.
If there is a shortage in the generic L now, it's only because the hospitals bought far ahead of what they really need. If the shortage is because clinics purchased the generic as well, it is even worse news for Spectrum.
The news will turn good for Spectrum only if Sagent will stop producing generic L completely.
Gunner, lets take your theory of the drug wholesalers being fully supplied with leuco for a few quarters. Don't you think this will also impact Sagent? Sagent will not continue to produce a low margin low sales product to sit on the shelf. Therefore the shortage WILL return and the Fusilev cycle will begin again.
It is not my theory... It's what Ken Keller told everyone during the conference.
He also said that they think they will lose all the hospital business since hospitals are price sensitive, not like clinics.
Ii don't think Sagent is making money on the generic L, but still they decided for some reason to get into this business.
If you trust what Ken Keller said, whole sellers bought much more than the end user demand because of the shortage of the generic L.
I think the exact same thing happened with hospitals... They grabbed all the generic they could get their hands on.
It generated a virtual shortage... Now hospitals are fully supplied for 12 months to come.